The need for business leaders at all levels to have business acumen skills is growing and has never been more needed than today. At the same time, these same business leaders, who are struggling
with their business acumen, are embracing the power of Artificial Intelligence and the support it can provide in making critical business decisions that execute strategy and deliver value to customers and shareholders.
These two things are not mutually exclusive; you can’t simply use AI to make business decisions without possessing the necessary business acumen skills to understand the situation, challenges, and opportunities.
I recently had a discussion with one of our clients who was wondering how we can integrate more AI into our simulation workshops in a way that helps participants learn about the AI tools they can use to increase their efficiency and make better decisions.
Based on this discussion, I conducted research to identify the top 5 types of decisions business leaders are using AI to make and how they are implementing it. Here’s what I found:
1) Customer Targeting and Personalization Decisions
AI is helping leaders make smarter, faster decisions about who to engage, how to engage them, and when to do so.
By analyzing behavior patterns, preferences, and transaction data, AI can segment customers with incredible precision and recommend personalized messaging, offers, or channel strategies.
Example: A commercial leader in pharmaceuticals utilizes AI to recommend the next-best actions for HCP engagement, based on prescribing behavior, digital fatigue, and clinical needs.
2) Supply Chain and Operational Forecasting
AI is transforming how operations leaders handle inventory, logistics, and production planning. Machine learning models detect patterns across demand cycles, supplier reliability, and shipping constraints to optimize production schedules and prevent costly disruptions.
Example: A manufacturing VP utilizes AI to adjust batch sizes based on real-time demand signals and projected lead times, thereby reducing waste and enhancing working capital.
3) Pricing and Profitability Optimization
AI models increasingly power strategic pricing decisions that test scenarios, predict elasticity, and model competitor responses.
AI helps leaders transition from reactive discounting to margin-intelligent, dynamic pricing strategies that align with strategic goals.
Example: A GM utilizes AI to assess pricing thresholds across SKUs and channels, considering GTN (Gross-to-Net) impacts and customer churn risk.
4) Talent and Workforce Decisions
AI-supported people analytics are enabling HR and business leaders to make more informed decisions about hiring, development, and retention. From predicting turnover risk to identifying high-potential internal talent, AI is bringing rigor and insight to decisions that were once based primarily on intuition.
Example: A global HR leader utilizes AI models to identify potential talent gaps and simulate the impact of various workforce investments on long-term capability development.
5) Strategic Scenario Planning and Risk Mitigation
In high-stakes environments, AI is giving leaders a simulation engine to model market shifts, regulatory scenarios, or macroeconomic pressures. These tools help leaders test “what if” outcomes before making big bets, adding foresight to strategic choices.
Example: A corporate strategy team utilizes AI to model the financial implications of potential mergers and acquisitions (M&A) moves under various global interest rate scenarios.
Final Thought: AI Is the Tool—Business Acumen Is the Driver
I was thrilled and surprised to discover that every one of these top five uses has been in the business acumen simulations we have delivered so far in 2025!
Discovering this convinces me even further that AI is not a replacement for sound judgment. It’s a force multiplier for leaders who understand the context, can ask the right questions, and know how to act on insights.
In our business simulation workshops, we’re now experimenting with integrated AI moments where learners can explore how AI might inform, but not replace, their decisions. It’s early days, but the signal is clear: the leaders who thrive in the future will be those who combine AI fluency with business acumen mastery.
